The Delhi High Court on Monday granted a major relief to Jammu and Kashmir Power Development Department (PDD) by staying the order passed by the Central Electricity Regulatory Commission (CERC), New Delhi in which the secretary PDD was asked to pay Rs 75 Crores by October 25.
The CERC had issued the order for recovery of Unscheduled Interchange charges of Rs. 75 crore by 25th of this month failing which the Commission had warned that contempt proceedings will be initiated against the Secretary, JKPDD.
Sources told KNS, that the state, through its Standing Counsel Suhail Malik challenged the CERC order in Delhi High Court on the grounds that the Commission has failed to adhere to the principle of natural justice and that the order was without jurisdiction as the Electricity Act, 2003 does not extend to the State of Jammu and Kashmir.
The state took a stand that since the Electricity Act does not extend to the state of J&K; the CERC has no jurisdiction to pass orders against it. Advocate Malik also submitted on behalf of the PDD that J&K enjoys a special status under article 370 the Indian Constitution and that a central legislation cannot extend to the State without it being ratified by the J&K legislative assembly.
The court after hearing the submissions stayed the order of Central Electricity Regulatory Commission, subject to the payment of the amounts due.